SEDD asked to get Monroe council approval for tax, return to bond commission

SEDD Executive Director Charles Theus speaks to the Monroe City Council concerning plans for the tax.(Photo: Ashley Mott/The News-Star)

The Southside Economic Development District failed to obtain State Bond Commission approval for a 0.55 percent sales tax.

Instead, the commission asked Executive Director and Office Manager Charles Theus to return to the Monroe City Council and obtain a resolution of support for the tax.

If the resolution could be obtained immediately, the commission said it could be brought to an Ad Hoc committee on March 11.

Theus and attorneys Adam Parker and Jordan B. Monsour from the Butler Snow law firm addressed the commission regarding the proposed tax and fielded questions regarding community opposition.

Multiple members of the commission said they received numerous calls regarding the agenda item.

Rep. Phillip Devillier asked what the plan for the funds were if the measure went forward and was voted in.

Theus referenced a plan he said was approved by the city council. In a search of The News-Star's archives, a 2003 story references a SEDD payment for $60,000 to Space-Planners-HNTB for the preparation of an economic development plan for southern Monroe. An initial plan was completed in 2003.

In February 2015, the Monroe City Council approved a new committee to assist the SEDD board. That committee was tasked with helping develop a business plan to assist the district. There is no reference to an existing business plan.

In July 2016, the Monroe City Council welcomed new members, and since their election, a plan has not been approved by the council.

Theus did indicate the plan he referred to was created by SEDD before his time with the organization, a period of at least two years.

Theus said the district has plans to renovate a bridge crossing U.S. 165 near Carroll High School, but it will cost approximately $150,000. The district, he said, has been frugal with the money it has but cannot afford the repairs yet.

Devillier expressed concern that the addition of a 0.55 percent sales tax — which would raise the district's sales tax rate to 10.99 percent while hotel occupancy taxes would rise to 16.99 percent — would limit the ability of local agencies to obtain dollars for other items in the future, such as police raises, teacher raises or new fire equipment.

Also referenced was a letter of opposition sent on behalf of the Monroe Chamber of Commerce Board of Directors by Chamber President and CEO Sue Nicholson.

Theus indicated the Chamber appoints a person to the SEDD board, and he believes the Chamber is waiting to see the things that SEDD accomplishes.

He also said he thinks SEDD is getting closer to a working relationship with the Chamber.

Nicholson's letter details several points of opposition, including concerns that proper procedures were not followed to bring the tax to voters, previous audit findings for the City of Monroe related to SEDD and the potential negative impacts the proposed tax could have on the southside's economy.

The bond commission also said several elected officials contacted the group stating they were not involved in discussions regarding the tax.

Theus said he was personally at the city council on Tuesday to listen to concerns, objections, and the council had not questions, no concerns. He also indicated that the council had not passed a resolution against the tax.

Theus did address the council at its Feb. 12 meeting during the public comment period where any citizen can speak about any topic. He was not on the council agenda to present a plan.

He told the council some members were invited to a February meeting to discuss projects the tax would support if approved. Theus also asked Councilmen Kenneth Wilson and Eddie Clark to reach out with any questions.

Theus avoided including Councilman Michael Echols in any acknowledgments of the city council.

"We are people," Theus said. "We are not going to kowtow to anybody ... We are not going to kowtow to the northside, because we don't oppose anything they want to do. We don't get in Mr. Echols' way. We don't want him in our way."

When Secretary of State Kyle Ardoin said legislators contacted him to say they were not involved in the conversation, Theus said the attorneys contacted everyone of the legislators in the district personally.

State Treasurer and Chair John Schroder said he also received many phone calls and suggested Theus obtain a resolution saying the city council is in support of the measure.

"I sort of feel like we are trying to settle the argument, and that is really not our place," Schroder said.

Theus agreed but expressed concern that he might not be able to get the tax on the council agenda.

"In Monroe, you have to have a council member that will say I will put it on the agenda," Theus said, indicating he thought it was possible the resolution would not go on the agenda because it's an election year.